- USD/CHF finds modest support on Thursday after dipping to a new weekly low in the Asian session.
- A risk-on market mood weakens demand for the safe-haven Swiss Franc (CHF).
- A mild US Dollar recovery, backed by receding Fed rate cut bets, lends additional support.
- However, trade tensions and dovish FOMC signals continue to limit the pair’s upside potential.
USD/CHF edged up from its lowest point of the week early Thursday, recovering slightly from the 0.7870 region but struggling to gain traction above the 0.7940 mark. The pair’s rebound remains shallow as conflicting market drivers keep investors cautious.
A positive tone across Asian equities—mirroring Wednesday’s US market gains—has weighed on the safe-haven CHF. Meanwhile, the US Dollar is benefiting from a pullback in expectations for an imminent Fed rate cut, providing modest support to USD/CHF.
Still, the release of the FOMC Minutes from the June 17–18 meeting showed that policymakers remain open to further rate cuts later this year, especially in light of ongoing inflation risks. This has kept USD bulls in check and limited the pair’s upside.
Additionally, renewed trade tensions are dampening broader sentiment. President Trump issued tariff notices to eight smaller trading partners on Wednesday, confirming that the newly announced levies—such as the 50% tariff on copper imports—will take effect on August 1 with no further extensions. Trump also warned of escalatory tariffs in response to any retaliation.
Given this backdrop, the path ahead for USD/CHF remains uncertain. While short-term buying interest has emerged near the multi-year low, sustained recovery will likely depend on upcoming US economic data—especially weekly Initial Jobless Claims—and fresh commentary from Fed officials.
Without a decisive break above the 0.7950 level, the pair may continue to trade in a cautious, consolidation phase.
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